Movie mogul Harvey Weinstein was said to be spearheading the project, with Chinese filmmaker Ronnie Wu in negotiations to take over the franchise from Lee.

Now Yeoh, who portrayed warrior Yu Shu Lien, says there have been talks about a second instalment centred around her character, but she's hesitant to officially sign up to the film just yet.

"It's early stages," the former Bond girl and Memoirs of a Geisha star tells Britain's Metro paper.

"It still depends on the script and who the director is, and it's never easy to make another movie after such an incredible classic but Crouching Tiger is a gem in my heart and always will be. So we will see."

Ang Lee, who also directed acclaimed films Brokeback Mountain and The Ice Storm, is in the running for Best Picture and Best Director awards at the Oscars for his latest film Life of Pi. The film has received 11 Academy Award nominations overall.